Electric vehicle manufacturers have started putting off product launches as the government is yet to announce extension of the subsidy scheme that expired in March last year.
The government had indicated earlier that it would continue the subsidy scheme till the National Electric Vehicle Mission Policy was implemented.
However, a formal extension is yet to be given.
This has led to EV sales almost halving since the beginning of this fiscal.
This has forced the manufacturers to go slow on their launch plans.
Among others, Mahindra Reva has delayed the launch of its next generation car NXR, now rechristened e2o (pictured)
“We are hoping the government will soon reintroduce the subsidies on electric cars and electric two-wheelers,” said Chetan Maini, founder and chief of strategy & technology, Mahindra Reva Electric Vehicles.
“We are ready with the product and we can start production as soon as there is some clarity on the subsidies,” he said.
Media reports have suggested that the government will soon bring back the subsidies.
But nothing has materialised yet, said S Gill, CEO, Hero Eco and director of the Society of Manufacturers of Electric Vehicles. “Despite all our efforts, there seems to be a delay. It is increasingly getting difficult to survive for small players. Bigger players are trying to hold back.”
“We have also delayed our launch. Sales across industry is almost 30% of what we were selling a year back,” said Gill.
According to industry officials, at least 3-4 launches are on hold.
In August last year, the government had approved a `23,000 crore plan for electric and hybrid vehicles over the next eight years and set a target of selling 6 million vehicles by 2020. The scheme is an extension to the National Electric Vehicle Mission Policy, announced in the 2011 Budget by the then finance minister Pranab Mukherjee.